US Lawmaker Asks Google and Apple To Offer More Details Concerning Fake Crypto Apps

The chair of the Senate Banking Committee, Senator Sherrod Brown, has requested that Google and Apple disclose more information about the countermeasures they employ to ensure that some apps do not promote cryptocurrency scams. In letters addressed to Alphabet, the parent company of Google and Apple, they have asked both companies to provide information on how they are curbing crypto scams in certain apps.

Tim Cook, the CEO of Apple, and Sundar Pichai, the CEO of Alphabet, have been requested to disclose the steps they are taking to ensure that fraudulent crypto apps are not allowed on their app stores.

Brown requested that the companies demonstrate how they rate these apps and the steps they take to ensure that phishing apps are not available in their app stores.

The Senator stated,

“Cyber criminals have stolen company logos, names, and other identifying information of crypto firms and then created fake mobile apps to trick unsuspecting investors into believing they are conducting business with a legitimate crypto firm. Alarmingly, far too many investors have fallen victim to such scams, with losses exceeding $42 million. While firms that offer crypto investment and other related services should take the necessary steps to prevent fraudulent activity, including warning investors about the uptick in scams, it is likewise imperative that app stores have the proper safeguards in place to prevent fraudulent mobile application activity.”

Brown stated at a Thursday hearing with the Senate Banking Committee on “Understanding Scams and Risks in Crypto and Securities Markets” that regulators should focus more on combating crypto scams.

“We hear industry players asking for traffic regulations when a major fraud is discovered and after a major player has knowingly broken the law. The rules are there, the roadmap is clear, and [the senate banking committee] must make sure our regulators enforce the law and protect the workers and families who keep this economy going […] the industry should not write the rules they want to follow.”